According to a report, two cities in western Canada were named the closest commercial real estate “hotspots” to the cannabis market.
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Legal marijuana is fueling demand for commercial real estate, especially in Alberta
Real estate company RE / Max Commercial says both Kelowna, BC and Edmonton are expected to see positive commercial growth in the coming months due to the legalization of cannabis.
Commercial property prices in the southern British Columbia city are expected to rise as cannabis retail license approvals will be “extremely competitive” once the substance becomes available, given the high demand.
Kelowna, located in the Okanagan Valley, has already identified more than 900 potential zones for pharmacies.
WATCH: Cannabis IQ: Legal marijuana could mean new jobs and money in Alberta’s economy
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Cannabis IQ: Legal marijuana could mean new jobs and money in Alberta’s economy
Cannabis IQ: Legal marijuana could mean new jobs and money in Alberta’s economy – October 9, 2018
Industrial land leases are also expected to rise in the region as marijuana companies battle for more space to run their operations, according to the annual Commercial Investor Report.
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This increase was due to the Kelowna real estate market experiencing an eight percent year-over-year decline in the total sales value of its commercial properties.
Meanwhile, vacancy rates in Edmonton are expected to continue to decline for the remainder of the year thanks to the arrival of Aurora Cannabis, and rental rates to increase moderately.
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The Ontario Real Estate Association is calling for greater protection against marijuana growing
New construction, particularly in the Leduc and Nisku neighborhoods, flourished as a 74,322-square-foot medical marijuana manufacturing facility and 37,161-square-foot auto parts and distribution warehouse were added by Ford Canada.
“Cannabis adds an additional industrial or retail demand segment to the overall market,” said Elton Ash, RE / MAX’s regional executive vice president in Western Canada on Wednesday.
“From the landlord’s point of view, that’s good news.”
© 2018 The Canadian Press
